For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    How Home Loan Application In Spouse's Name Beneficial?

    |

    While to some basic benefits of buying a property and applying for a home loan in joint name as in the name of your spouse are well known, but you still may not be acquainted with the whole idea as to why it is important and beneficial to include a co-applicant. Here's is a whole narration on this:

    How Home Loan Application In Spouse's Name Beneficial?
     

    1. Competitive interest rate terms as well as higher loan amount: So, it comes as a benefit when both the partners are working as in that case the home loan eligibility amount goes higher and in such a case you can either look for a property of a higher price or limit individual's contribution.

    In a usual case, individual is able to secure 5 times as loan amount in comparison to his or her net salary. So, if you earn 5 lakh as your annual pay-out, then maximum loan amount you can seek from a financial institution is 25 lakhs. Needless to say, there are other factors at play that also decide on your loan amount.

    Also, in a case where the first owner is shown as a woman, there are better rates such as a rebate of 50 to 100 basis point.

    2. Application can be sanctioned basis the credit profile of the second applicant: Also, when the husband's credit profile is not worthy, banks make a call basis the credit profile of the other applicant who probably is in a better position when it comes to financial health.

    3. Stamp duty and registration charges lower for female applicant: When it comes to stamp duty and other costs associated with real estate purchase there too is a leeway for women owners with cheaper stamp duty and other charges. Say in Delhi while ownership of the premise solely in the name of a man attracts 6% stamp duty, the same goes down to 4% in case of women being the first owner of the property.

     

    4. Succession planning gets smooth: When you taken a first step with joint ownership, your future course in the case of succession planning will get smooth and without much of legal hassles and paperwork. As when there is a eventuality, the jointly owned property will then go to the living owner on its own.

    5. Taxation benefit: Two ways the income tax exemption can be claimed one on the principal payment on home loan up to Rs. 1.5 lakh under section 80C and when a property is co-owned, both the applicants in proportion of their ownership in the property shall be able to make a claim on principal repayment upto Rs. 1 lakh.

    Goodreturns.in

    Story first published: Friday, December 21, 2018, 11:20 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    Notification Settings X
    Time Settings
    Done
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more